Income Tax Notice: The Income Tax Department is sending notices to many people, especially moonlighting professionals. Moonlighting professionals are those people who are earning money through another part time job or full time job along with their main job. During work from home, many people did two jobs but did not pay tax on the second job. Now the Income Tax Department is catching such people. If you have also received such an income tax notice, how to answer it and correct your mistake.
Solution to every tax problem
Tax expert Gauri Chadha told that many times it happens that we are taking very small amount from where we are working and hence TDS is not deducted on it. Due to non-deduction of TDS on small amount, income is not reflected in AIS, 26as. Individual or amount not covered by TDS will not be reflected in AIS and 26as.
Tax filing glitch
If the Income Tax Return (ITR Filing) is filed only on the basis of Form 16, then the tax is exempted. There is no mention of earnings from moonlighting in Form 16. In such a situation, income tax notices are coming to the people.
Income tax notice has come, what to do?
If you have also received income tax notice and if this notice is wrong, then first you have to prove that it is not your income. But if it is your income, then you had to pay tax on it. Demanded tax will have to be paid if the notice is correct. Not only this, you will have to pay the amount of tax along with interest on late payment.
Penalty may also apply
Not only this, you may be penalized for late return. In this case you will have to pay extra amount. It is not possible for you to avoid penalty.